Foreclosure Defense Nuggets
I read an Article and Discovered: FYI
I'm wondering if you have heard about something called "deficiency judgment?" I understand it to mean it is what a person still owes on a loan for a home he or she has lost. I learned that in one state, banks have 5 years to file for a deficiency judgment and about 20 years to collect it. We must pray for the US on this situation. We know it will take God to turn this around. He has the answer.
After foreclosure I would have thought that the worse has happend and people would start to heal and begin over. But this news blows me away! How about you? Enough to PRAY!
To my understanding how a deficiency judgment works; is the difference between the value of a foreclosed property when it is sold at auction and the outstanding debt left after it sold.
Like if a homeowner owes $200,000 on a home but now it's worth $100,000 and sold for $100,000. You would still owe, wow, a $100,000???? That's hard to take. If I understood correctly!
And it may be possible to take other assets you own in other states to fill the deficiency judgments. Whoa! Over half the states in US can impose a deficiency judgment, Rules are different; depending on the state.
So be careful not to give up on your mortgage just because its over leveraged. It may not be a smart move, especially if you could pay it. Even you can't pay and think you have to be foreclosed on, get more informed!
I was shocked in reading the article and thought people needed to know, if they don't know. Hope it helps in case you're going through foreclosure or thinking of just walking away. Ask the person helping you about it for your state. All the people that works with me, I will get the information for you for your state.